AA vs. LNG

Last updated Jun 13, 2026

AA (Alcoa Corporation) and LNG (Cheniere Energy, Inc.) are both stocks. AA operates in Aluminum (Basic Materials), while LNG operates in Oil & Gas Midstream (Energy). Over the past 5 years, AA returned 14.08%/yr vs 23.34%/yr for LNG. At a 0.32 correlation, their price movements are largely independent.

Performance

AA vs. LNG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alcoa Corporation (AA) and Cheniere Energy, Inc. (LNG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AA achieves a 29.83% return, which is significantly higher than LNG's 24.74% return.

AA

• 1D: -0.30%
• 1M: 0.64%
• YTD: 29.83%
• 6M: 49.53%
• 1Y: 140.52%
• 3Y*: 24.73%
• 5Y*: 14.08%
• 10Y*: —

LNG

• 1D: 0.47%
• 1M: 0.79%
• YTD: 24.74%
• 6M: 28.05%
• 1Y: 3.66%
• 3Y*: 19.57%
• 5Y*: 23.34%
• 10Y*: 22.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AA vs. LNG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AA Alcoa Corporation	29.83%	42.46%	12.43%	-24.33%	-23.12%	159.05%	7.16%	-19.07%	-50.66%	91.84%
LNG Cheniere Energy, Inc.	24.74%	-8.70%	27.18%	15.02%	49.30%	69.48%	-1.70%	3.18%	9.94%	29.95%

Correlation

The correlation between AA and LNG is -0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (All Time) Calculated using the full available price history since Nov 1, 2016	0.32

The correlation between AA and LNG shifts across timeframes, from -0.08 (1 year) to 0.32 (all time), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AA : $18.13B LNG : $50.79B
EPS AA : $3.92 LNG : $6.80
PE Ratio AA : 17.55 LNG : 35.48
PEG Ratio AA : 0.05 LNG : 0.19
PS Ratio AA : 1.42 LNG : 2.58
PB Ratio AA : 2.66 LNG : 13.53
Total Revenue (TTM) AA : $12.66B LNG : $20.28B
Gross Profit (TTM) AA : $948.00M LNG : $5.52B
EBITDA (TTM) AA : $1.70B LNG : $5.81B

Return for Risk

AA vs. LNG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AA

AA Risk / Return Rank: 92
AA Sharpe Ratio Rank: 94
AA Sortino Ratio Rank: 90
AA Omega Ratio Rank: 87
AA Calmar Ratio Rank: 95
AA Martin Ratio Rank: 96

LNG

LNG Risk / Return Rank: 44
LNG Sharpe Ratio Rank: 48
LNG Sortino Ratio Rank: 41
LNG Omega Ratio Rank: 41
LNG Calmar Ratio Rank: 47
LNG Martin Ratio Rank: 46

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AA vs. LNG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alcoa Corporation (AA) and Cheniere Energy, Inc. (LNG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AA	LNG	Difference
Sharpe ratio: Return per unit of total volatility	2.60	0.14	+2.46
Sortino ratio: Return per unit of downside risk	3.05	0.39	+2.65
Omega ratio: Gain probability vs. loss probability	1.36	1.05	+0.32
Calmar ratio: Return relative to maximum drawdown	6.49	0.15	+6.34
Martin ratio: Return relative to average drawdown	20.55	0.31	+20.24

AA vs. LNG - Sharpe Ratio Comparison

The current AA Sharpe Ratio is 2.60, which is higher than the LNG Sharpe Ratio of 0.14. The chart below compares the historical Sharpe Ratios of AA and LNG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AA vs. LNG - Drawdown Comparison

The maximum AA drawdown since its inception was -90.90%, smaller than the maximum LNG drawdown of -97.84%. Use the drawdown chart below to compare losses from any high point for AA and LNG.

Drawdown Indicators

	AA	LNG	Difference
Max Drawdown Largest peak-to-trough decline	-90.90%	-97.84%	+6.94%
Max Drawdown (1Y) Largest decline over 1 year	-21.77%	-24.09%	+2.32%
Max Drawdown (3Y) Largest decline over 3 years	-52.25%	-24.87%	-27.38%
Max Drawdown (5Y) Largest decline over 5 years	-75.46%	-24.87%	-50.59%
Max Drawdown (10Y) Largest decline over 10 years	—	-57.53%	—
Current Drawdown Current decline from peak	-24.27%	-18.55%	-5.72%
Average Drawdown Average peak-to-trough decline	-46.12%	-43.14%	-2.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.87%	11.88%	-5.01%

Volatility

AA vs. LNG - Volatility Comparison

Alcoa Corporation (AA) has a higher volatility of 21.35% compared to Cheniere Energy, Inc. (LNG) at 7.19%. This indicates that AA's price experiences larger fluctuations and is considered to be riskier than LNG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AA	LNG	Difference
Volatility (1M) Calculated over the trailing 1-month period	21.35%	7.19%	+14.16%
Volatility (6M) Calculated over the trailing 6-month period	41.11%	21.49%	+19.62%
Volatility (1Y) Calculated over the trailing 1-year period	54.44%	27.02%	+27.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.26%	30.27%	+25.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	55.66%	32.50%	+23.16%

Dividends

AA vs. LNG - Dividend Comparison

AA's dividend yield for the trailing twelve months is around 0.58%, less than LNG's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
AA Alcoa Corporation	0.58%	0.75%	1.06%	1.18%	0.88%	0.17%	0.00%	0.00%	0.00%	0.00%	0.32%
LNG Cheniere Energy, Inc.	0.90%	1.06%	0.84%	0.95%	0.92%	0.33%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

AA vs. LNG - Profitability Comparison

The chart below illustrates the profitability comparison between Alcoa Corporation and Cheniere Energy, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AA - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alcoa Corporation reported a gross profit of 0.00 and revenue of 3.19B. Therefore, the gross margin over that period was 0.0%.

LNG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Cheniere Energy, Inc. reported a gross profit of 0.00 and revenue of 5.87B. Therefore, the gross margin over that period was 0.0%.

AA - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alcoa Corporation reported an operating income of 0.00 and revenue of 3.19B, resulting in an operating margin of 0.0%.

LNG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Cheniere Energy, Inc. reported an operating income of -3.49B and revenue of 5.87B, resulting in an operating margin of -59.4%.

AA - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alcoa Corporation reported a net income of 425.00M and revenue of 3.19B, resulting in a net margin of 13.3%.

LNG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Cheniere Energy, Inc. reported a net income of -3.50B and revenue of 5.87B, resulting in a net margin of -59.7%.

Frequently Asked Questions

Can I hold both AA and LNG in my portfolio?

AA and LNG have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AA or LNG?

AA has higher volatility (21.35%) compared to LNG (7.19%). In terms of maximum drawdown, AA dropped -90.90% vs LNG's -97.84%.

Which has better risk-adjusted returns?

AA currently has the higher Sharpe Ratio (2.60 vs 0.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.